All of the Following Statements Are True Regarding IASB's Guideline

question 16

Multiple Choice

All of the following statements are true regarding IASB's guideline that companies must demonstrate change in accounting policy as preferable or as an improvement, except

• A)Diversity in situations and characteristics of the items encountered in practice require the use of professional judgment.
• B)Changes in accounting policy are appropriate only when a company demonstrates that the newly adopted generally accepted accounting policy is more relevant and reliable than the existing one.
• C)Changes in accounting policy are appropriate only when a company demonstrates an improved income tax effect alone.
• D)All of these statements are true.

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Definitions:

Households

Units of people living together, which can be composed of family members, roommates, or individuals, sharing domestic responsibilities and possibly resources.

Women-Headed

Refers to families or organizations led by women.

Myths

Consist of traditional stories, especially those concerning the early history of a people or explaining natural or social phenomena, and typically involving supernatural beings or events.

Research Found

A phrase indicating discoveries or conclusions derived from systematic investigation or study.